Asian stocks down on banks, growth fear

By staff and wire reports

HONG KONG, China -- Asian stocks dropped Tuesday, with record jobless numbers shaking Japan to a third down day.

Jitters about Argentina's possible default on $3 billion in bonds were also worrying stocks, which were already recoiling from a 2.9 percent dip in the Dow Jones industrial average overnight.

In Tokyo, the Nikkei closed with a loss of 0.9 percent, at 10,512.82. The broader Topix index dropped even more, giving up 1.4 percent to 1,067.76.

Hong Kong ended down 1.0 percent, with New Zealand down a similar amount. Australia ended narrowly in the red.

Korea and Taiwan suffered particularly heavy losses, mapping Nasdaq's 3.9 percent decline overnight.

The Singapore Straits Times index was down 0.8 percent at 1,382.95 in late trade.

Third down day for Tokyo as banks fall

In Japan, stocks suffered a third loss in a row after the government said already record unemployment had risen to 5.3 percent in September, from 5.0 percent the month before.

Japan's banks were beset from all fronts. With concern lingering about bad loans, the sector faced the fallout of the collapse of telecom-equipment maker Ohkura Electric Co.

Its shares are due to be delisted Jan. 30 and ended down 49 percent at 53 yen.

Mizuho Holdings, the world's biggest bank by assets, fell 2.2 percent to 362,000 yen. It is its lowest close since it listed in September 2000.

Dai-Ichi Kangyo, one of Mizuho's banks, is a large shareholder in Ohkura.

Chip makers continued to struggle, with Toshiba Corp. dropping 6.65 percent to 449 yen. It is still feeling the effects of last week's loss and shock profit revision.

Matsushita Electric Industrial Co. fell 4.12 percent to 1,443 yen. It said after the close of trade that it expects a net loss of 265 billion yen for the business year through March, down from a projection of a 57 billion yen profit.

Hong Kong's big caps off

In Hong Kong, the benchmark Hang Seng index dropped 1.0 percent to 10,076.43.

The market's largest stock, bank HSBC, was hit by fears about Argentina's debt and a possible public default.

HSBC fell 2.3 percent to HK$85.25, extending Monday's 1.1 percent drop.

China plays sank in the afternoon, giving up morning gains. China Mobile, Hong Kong's second-largest listing and the largest cell-phone company in China, lost 1.05 percent to HK$23.45.

China Unicom, China's cell-phone No. 2, dropped 0.68 percent to HK$7.25.

On the mainland, China's B shares fell - with Shanghai down 1.3 percent and Shenzhen off 1.96 percent - as investors sold off shares likely to benefit from China's World Trade Organization entry.

Australia fares better than most

Australia's market has proven resilient in the global downturn. Tuesday was no exception, with the S&P/ASX 200 index giving up just 0.1 percent to end at 3,252.8.

News Corp. ended down 1.3 percent at A$13.50, a second day after losing out on the bidding for Hughes Electronics and its coveted DirecTV broadcaster.

Mining stocks such as BHP Billiton and Rio Tinto were also down.

But telecom Telstra, a recent drag on the index, gained 2 cents to A$4.97.

New Zealand's NZSE-40 Capital index lost 0.9 percent to end at 1,941. Telecom New Zealand, the largest listing, accounted for around a third of all trade.

It lost 16 cents to close at NZ$4.45, after a 20 cent rise on Monday.

Frucor Beverages Corp. was the second most-active stock, down 4 cents to NZ$2.41, as investors mull Danone's offer for the company.

In Seoul, the benchmark Kospi index closed down 2.56 percent at 533.87.

The poor U.S. performance put an end to a good run for Korea's stocks, which had put on gains for seven straight sessions.

World memory chip No. 1 Samsung Electronics, Seoul's largest listing, saw heavy pressure. It lost 5.4 percent to end at 174,000 won.

SK Telecom fell 3.03 percent to 240,000 won. KTF Co., Korea's mobile-phone No. 2, ended down 4.1 percent at 34,700 won.

Taiwan's Taiex fared even worse, dropping 3.7 percent to 3,915.61. The electronics stocks that drive the market sold off particularly hard.

Taiwan Semiconductor Manufacturing Co., the world contract chip No. 1, lost the daily seven percent limit to close at T$62.50. Good prospects had seen it gain the limit in recent days.

Rival United Microelectronics Corp. was actively traded, also down the limit to T$29.30.

Taiwan's largest life insurer, Cathay Life Insurance, slumped 4.3 percent to T$40.30 after netting a T$2.02 billion ($59 million) loss for the year through September on Monday.

Singapore shares were struggling on the bad tech news, hurting stocks like computer parts maker Creative Technology, and another dip from flagship carrier Singapore Airlines.

Reuters contributed to this report.